Commuter Benefits through your employer allow you to set aside tax‑free money for eligible parking expenses or mass‑transit fees. Two ways this is done are Parking Reimbursement Accounts (PRA) and Mass Transit Reimbursement Programs.
Parking Reimbursement Accounts (PRA) allow you to set aside an allotted amount per month tax free in a PRA. Use the funds, which are deducted from your paycheck, in this account for work parking expenses. When you have a parking expense, submit a claim to your employer’s PRA claim administrator. Any unused funds in your PRA roll over each month; however, you must use your account balance within 180 days or you will lose those dollars. You may start or stop your account at any time.
Mass Transit Reimbursement allows you to set aside an allotted amount per month tax free if you commute via mass transit (bus, train, etc.). The funds are automatically deducted from your paycheck. You can order a voucher or fare card through your employer’s provider to use for commuter fees. You may start or stop contributing to the account at any time.
Talk to your employer to see what options are available to you.
Content by Lockton Dunning Benefits